Melville hotel project wins more tax breaks after its price tag increases by $10 million

An extended-stay hotel proposed for the Route 110 corridor in Melville has a higher price tag, new owners and more competition, according to officials and documents.

The Residence Inn by Marriott, to be built at 500 Broad Hollow Rd., would cost nearly $50 million to complete, or 25% more than two years ago when the development group won tax breaks from Suffolk County.

As a result, on Thursday the board of the county’s Industrial Development Agency voted unanimously to increase the $4 million incentive package awarded to the project in 2022 by about $800,000.

The $10 million increase in the project’s cost is due to price rises for unionized construction workers, building materials and higher interest rates, according to Lou Giaquinto, owner of the real estate firm Giaquinto Management LLC.

Giaquinto Management is now the project’s majority owner, replacing Rosario C. Cassata, who constructs and owns apartment buildings, according to an amended application for tax incentives from the Suffolk IDA.